Please use the following fact pattern to answer questions 81 and 81. At the star
ID: 2431379 • Letter: P
Question
Please use the following fact pattern to answer questions 81 and 81. At the start of the year, the sole shareholder in an s-corporation has a basis of $80000 and debt basis of $40000. During the year, the S-corporation has a non-separately stated loss of $150000. 80.What is the maximum loss the shareholder claim on its income tax return? A. 150000 B. 80000 C. 40000 D. 120000 E. 0 81.If the shareholder takes the maximum amount of loss on their income tax return, what is the shareholder’s stock and debt basis thereafter? A. Stock Basis = 0 and Debt Basis = 0 B. Stock Basis = 0 and Debt Basis = 40000 C. Stock Basis = 0 and Debt Basis = (30000) D. Stock Basis = (30000) and Debt Basis = 0 E. Stock Basis = 80000 and Debt Basis = 40000
Please use the following fact pattern to answer questions 81 and 81. At the start of the year, the sole shareholder in an s-corporation has a basis of $80000 and debt basis of S40000. During the year, the S-corporation has a non-separately stated loss of $150000 80. What is the maximum loss the shareholder claim on its income tax return? A. 150000 B. 80000 C. 40000 D. 120000 ?.0 81. If the shareholder takes the maximum amount of loss on their income tax return, what is the shareholder's stock and debt basis thereafter? A. Stock Basis 0 and Debt Basis 0 B. Stock Basis 0 and Debt Basis 40000 C. Stock Basis 0 and Debt Basis (30000) D. Stock Basis (30000) and Debt Basis-0 E. Stock Basis 80000 and Debt Basis 40000Explanation / Answer
80 - Maximum loss that a shareholder can claim on its income tax return = B $80,000
81 - The shareholder's stock and debt basis thereafter = B i.e. Stock basis =0 and Debt basis = 40,000.